Question

Over-the-Top Technologies (OTT) operates a computer repair and web consulting business. News Now (NN) publishes a local newspaper. The two companies entered into the following transactions. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.)

NN billed OTT for $715 of advertising services provided this month on account.

OTT repaired some of NN’s equipment this month, for $215 on account.

NN collected $715 cash from OTT for the advertising services provided in (a).

NN paid $77 cash to OTT for OTT advertising NN’s online newspaper this month on OTT’s Website.

OTT and NN signed a promissory note, documenting OTT’s $1,700 cash loan to NN this month with repayment to occur in six months.

Show the journal entries that OTT would record for items (a)–(e).

2.